<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Chattem, Inc.'s unaudited financial statements and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> NOV-30-1999 <PERIOD-START> DEC-01-1998 <PERIOD-END> FEB-28-1999 <CASH> 3,120 <SECURITIES> 0 <RECEIVABLES> 53,408 <ALLOWANCES> 775 <INVENTORY> 23,341 <CURRENT-ASSETS> 83,068 <PP&E> 36,998 <DEPRECIATION> 18,535 <TOTAL-ASSETS> 480,618 <CURRENT-LIABILITIES> 71,116 <BONDS> 367,379 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 2,033 <OTHER-SE> 31,137 <TOTAL-LIABILITY-AND-EQUITY> 480,618 <SALES> 62,728 <TOTAL-REVENUES> 62,728 <CGS> 16,880 <TOTAL-COSTS> 48,318 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 8,806 <INCOME-PRETAX> 5,735 <INCOME-TAX> 2,158 <INCOME-CONTINUING> 3,577 <DISCONTINUED> 0 <EXTRAORDINARY> (427) <CHANGES> 0 <NET-INCOME> 3,150 <EPS-PRIMARY> .33 <EPS-DILUTED> .31